White Knight & Space Ship One cost somewhere 25 Million dollars to make. X-Prize is a $10 Million dollar prize plus a trophy. If Scaled Compsites win and collect $10 Million dollar Prize. Space Transport Corporation ship blown up and waste money. Founders don't have money and future jobs to get them hired.

1. Will it be worthless contest ever?

2. If Losers don't get any fundings at all; Other companies who build rocketship didn't win. What do they get?

3. How can company survive less than revenue sponsors?

4. Will they throw rocket in dump city?

I swear, I don't really get it at all. My friend keep saying this to all time.

I really suggest that you read more of the literature and even the posts here, although some are somewhat jaded...including mine I believe.

You need to look further than the end of your nose for the answers to these questions. There is no immediate direct payoff. These development teams understand this. But if you come up with the best ideas that can be utilized maybe not by you but by someone else who will pay you for your technology, you could be in for a big payday in the future....capeesh???...

White Knight & Space Ship One cost somewhere 25 Million dollars to make. X-Prize is a $10 Million dollar prize plus a trophy. If Scaled Compsites win and collect $10 Million dollar Prize....

... snip ...

I swear, I don't really get it at all. My friend keep saying this to all time.

Technology is like betting on the horses. If you win, if you come in first, the rewards can be IMMENSE. Yes, Scaled spent $25 million to (or so it looks as of this writing) win $10 million BUT they already have interest from at least one company wanting to license their technology (Virgin). So... IF you win, the prize is not a mere $10 million but hundreds of millions or even billions.

This is one reason technology pioneers do such. The other... well, it's because they CAN, and that's the spirit of humanity and it will carry us to the stars.

I'm only adding a little bit to the others who answered to your post - they all said important and relevant arguments.

Who ever is competing for the XPRIZE or - in future for the CUP - is searching for new solutions. He is searching for new or better solutions IN DETAIL especially.

This means he gets Know How he hasn't had before and only a few others have too. This Know How not only is consisting of "How to do things" but is including too that he himself personally has learnt something important and relevant.

By the projects each member of a team and each enterprise involved gets new skills, improved skills, new insights - and new human cpital is created.

So even if the most temas necessaryly will loose the competition they all have an advantage from competing. They increase their chances at the markets (including labor markets) and will get employment or orders from at least all firms doing business in the space idustrie in the widest sense.

Technology is like betting on the horses. If you win, if you come in first, the rewards can be IMMENSE.

This is not at all unique to the space industry of course. Companies can spend hundreds of millions competing for important contracts, such as is the case with Boeing and Lockheed, who are always fighting with each other for some billion dollar government contract. It's good business because if they win they win big, and if they lose, they still have valuable technology to put to use elsewhere. This type of competition benefits everyone, particularly the public who will ultimately reap the rewards.